District Heating Market Size Analysis
According to a recent survey conducted by ChemView Consulting, the Global District Heating Market grew at a CAGR of 5.6% between 2017-2021 and is estimated to be US$ 1,51,327.4Mn in 2022. Currently, the market is anticipated to grow at a CAGR of 5.5% and is expected to reach a valuation of US$ 2,58,489.1Mn by 2032 end.
In places like Finland, the market for district heating is constrained. In the current, scholarly and political debate concerning third-party access (TPA) and opening the district heating networks to competition, for instance, Finnish Energy, the trade organization for the Finnish energy industry sector, is working to find solutions.
As a result, market participants are becoming aware of prospective policy ideas like the freedom to select from a variety of heating techniques and potential legal restrictions that limit the growth of the service industry.
GROWING URBANIZATION AND INDUSTRIALIZATION
One of the global megatrends is urbanization, and the need for district heating is increasing due to ongoing urban expansion. Due to the rising population movement from rural to urban areas, public spending has been rising.
As a result, the need for heating has been steadily increasing, and as a result, significant investments have been made in the district heating industry. District heating systems are made possible by structured infrastructure advances by growing urbanization. Demand for sustainable, effective, dependable utility services, such as district heating and electricity generation, is increasing in metropolitan areas.
Urbanization, the steady movement in human population residency from rural to urban regions, along with total population growth, might bring another 2.5 billion people to urban areas by 2050, according to new United Nations forecasts.
REDUCED EFFECTIVENESS IN SMALL HEATING LOADS AND SPACE CONSTRAINTS FOR DISTRIBUTION GRIDS
Big developers can use district heating for large-scale projects. The main reason is that small-scale developers do not adopt district heating in tandem with nearby developers due to their divergent building timetables and investments, even though they are aware of its advantages.
Small-scale developers choose traditional heating as a result, according to their schedule. District heating setups are typical in all new projects where space for a pipe network may be planned during building construction. Older structures might not have enough room for a pipe network, which restricts penetration. One of the main obstacles to adopting district heating systems is the installation of distribution pipes in pre-existing towns and districts that were not originally intended to have such a system.
INTEGRATION OF MULTIPLE ENERGY SOURCES
The capacity of district heating systems to combine various energy sources, such as waste heat and renewables, is one of their key benefits. However, the IEA reports that, down from 95% in 2000, roughly 90% of the world’s heat output in 2020 came from fossil fuels, notably coal (45%), natural gas (40%), and oil (5%).
The shift from third-generation to fourth-generation district heating will be accelerated by increased heat source diversity (especially from fossil fuels to renewables, electricity, and excess heat) and the integration of large-scale heat pumps. Fifth-generation district heating, which debuted in 2015, is a term for combined district heating and cooling networks that use distributed heat pumps and run at room temperature.
Market Segments Covered in Report
By Heat Source:
By Plant Type:
By Region and Country:
Why is the natural gas segment expected to grow with the highest CAGR during the forecast period?
During the projected period, the natural gas heat source sector is anticipated to have the greatest CAGR, at 5.9%. Since it is more efficient than electric heat pumps, it is mostly utilized for district heating.
This fuel can also be utilized in centralized systems to generate cozy heating through natural gas absorption devices that create hot steam. Additionally, natural gas is used extensively in the US residential sector for space and water heating.
Why is the combined heat and power (CHP) plant segment expected to grow with the highest CAGR during the forecast period?
The CHP segment is anticipated to register the second-highest CAGR of 6.9% during the projected period. As a result of CHP plants’ ability to minimize capital expenditure, offer economies of scale, reduce heat loss to the environment, and replace the usage of fossil fuels for district heating, greenhouse gas emissions are reduced.
They considerably improve power plant efficiency, which lowers fuel prices, carbon emissions, and local environmental harm. The requirements of mission-critical facilities, such as hospitals, data centers, research labs, etc., frequently influence the construction of CHP plants.
The regions analyzed for the market include North America, Europe, Latin America, Asia Pacific, Middle East, and Africa.
The market is portrayed as fragmented, with producers and service providers. Over the years, these businesses have successfully secured brand-new, lengthy contracts from various nations in every location.
The recent developments in the Global District Heating Market:
A list of some of the key suppliers present in the market are:
Report Coverage and Highlights
|Historical data available for||2017-2021|
|Market analysis||USD Million for Value and Tons for Volume, and CAGR from 2022 to 2032|
|Key regions covered||North America, Latin America, Europe, Asia-Pacific, Middle East, and Africa|
|Key countries covered||US, Canada, Brazil, Mexico, Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Saudi Arabia, Turkey, UAE, South Africa, Nigeria, Egypt|
|Key segments covered||By Heat Source, Component, Plant Type, Application, and Region|
|Customization scope||Available upon Request|
|Pricing and purchase options||Available upon Request|
Market Size Data
Value Chain Analysis
North America: U.S., Canada
Latin America: Brazil, Mexico, Argentina, Central America, Rest of Latin America
Western Europe: Germany, Italy, France, UK, Spain, Poland, Romania, Rest of Western Europe
Eastern Europe: Russia & Belarus, Balkan Countries, Baltic Countries, Central Asia, Rest of Eastern Europe
Middle East & Africa: KSA, UAE, Turkey, Israel, Northern Africa, South Africa, Rest of Middle East & Africa
East Asia: China, Japan, South Korea
South Asia & Pacific: India, ASEAN, Australia & New Zealand, Rest of South Asia & Pacific
Why Choose CVC Market Research?;
In the forecast period between 2022 and 2032, the market is expected to grow at a CAGR of 5.5%.
Growing urbanization and industrialization anticipate for market expansion.
Major global District Heating Market players are Fortum, Vattenfall, ENGIE, Danfoss, Statkraft, LOGSTOR, Vital Energiv, Kelag, SHINRYO CORPORATION.
Reduced effectiveness in small heating loads and space constraints for distribution grids
Europe is expected to account for the largest market revenue share in the Global District Heating market.
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